Question: In the short run, a decrease in the cash rate a. lowers the real interest rate, decreases investment, and shifts the AD curve rightward. b.

In the short run, a decrease in the cash rate

a. lowers the real interest rate, decreases investment, and shifts the AD curve rightward.

b. lowers the real interest rate, increases investment, and shifts the AD curve leftward.

c. raises the real inter,est rate, decreases investment, and shifts the AD curve rightward.

d. none of the above answers is correct.

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